Sharp in Talks on LCD Panel Alliances

Struggling electronics maker Sharp Corp. (6753.TO) has entered talks with Apple Inc (AAPL) , Google Inc. (GOOG) and Microsoft Corp. (MSFT) on forming alliances for its advanced liquid crystal display panels, according to sources close to the matter, Kyodo News reported Tuesday.

Sharp has come up with the idea with an eye to possible joint development of digital products such as tablets at a time when negotiations on a capital tie-up with Hon Hai Precision Industry Co. (2317.TW) of Taiwan have stalled.

Sharp is considering providing the three U.S. companies with small and medium-sized Igzo power-saving LCD panels with enhanced picture quality for laptops, tablets and smartphones, the sources said.

Sharp has sounded out Apple, Intel Corp, Google, Microsoft and Hewlett-Packard Co. (HPQ) about investing in the Japanese electronics maker after its business performance improves, they said.

Sharp is currently providing display panels for Apple's iPhone smartphones following a Y100 billion investment by the U.S. tech giant and plans to expand areas of alliance with it.

The sources also said Sharp is in talks with several Japanese companies for the supply of indium gallium zinc oxide panels, while negotiating with U.S. chip giant Intel (INTC) to jointly develop microprocessors.

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